I have been playing a bit and did a fully manual update to 1604:
1.0) disable any third party packages in /etc/apt/source.list.d/
1.1) in /etc/apt/source.list change "wily" to "xenial" throughout
2.) apt-get update
3.) apt-get install base-file dpkg systemd
4.) apt-get dist-upgrade
5.) and it works!

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https://bugs.launchpad.net/bugs/1560797

Title:
  package systemd-sysv 225-1ubuntu9.1 failed to install/upgrade:
  libgcrypt20 was unconfigured during 15.10 to 16.04 upgrade

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